MGT 497 WK 4 & 5 Assignment

Running head: Audit Exercise Paper One 1

Audit One 2

Audit exercise 1

Introduction

Technology has been noted as a pillar in any business organization. Essentially technology plays a crucial role in enhancing business operations and the creation of business opportunities in the market. Technology impact can be termed as multidimensional and causes a cascading impact within organizations (BurgeSmani and Wheelwright, 30). To demonstrate the role of technology, an example can be depicted from three major organizations in the market that have experienced the full emancipation of technology (Nokia, Apple and Microsoft). However, the scope of this paper is limited to the study of General Electric which is an organization construed to serve and render services to citizens in the society. GE is regarded as one of the most successful companies in the 21st century, this paper analyses the MTI of GE and evaluates its sustainability in relation to technology and innovation (Amernic, Craig and Tourish, 32).

GE MTI Capabilities and strategies

GE’s Organization structure and Business Portfolio

GE has undertaken tremendous steps to agglomerate technology into its performance. Under Welch’s watch the company managed to ensure budget allocation done with superior operating systems that enabled error detection. The operating systems in return brought about efficiency and reliability in the organizations functionalities. The operating system enabled management undertake previously had tasks and ensure the company remained on operation for a very long time while maintaining its profit margins (BurgeSmani and Wheelwright, 41). A central part of GE was establishment of a program that enabled nurturing of talents among the employees; this was mainly done via delegation of duties and the deployment of incentives. Management propounded on a motivation scheme that was able to permeate deep ranks among the middle level managers who utilized the opportunity to reward superior performances with recognition of talents and generous bonuses (Henderson and Evans, 40).

Value addition and increment of company core competencies are among other areas that management technology and innovation played and continues to play a key role. Technology has been utilized by management to open up the market by enhancing service delivery. For instance, the company recently launched a program that would offer customers service within a 24 hour period without necessarily any human intervention (Henderson and Evans, 101). This innovation stands out as one of the best trademarks the company has achieved for the past one century. Under the leadership of Welch, he deployed the use of Six Sigma, this is a demonstration that Welch clearly comprehends the significance of value addition for the customers and the organization’s strategic planning. The role of technology cannot be forfeited when it comes to improvement of service and product development in the organization (Followill et al., 33)

There are five key growth initiatives embraced by GE’s management owing to the leadership of Jeff, this are: - customer focus, growth, globalization, service and technical leadership, these key aspects are well demonstrated under the organizational structure and business processes (Followill et al., 91). The five key initiatives cannot grow without proper utilization of technology, for example for globalization to be achieved GE must embrace the use of the Internet. The Internet portrays a platform whereby management can reach a wide spectrum of stakeholders across diverse geographical locations at trimmed down costs. A major step towards enhancing growth and development of the company has been the launch of Ecomagination initiative which is precisely a medium through which an organization responds to the growing need and demand for cleaner and more efficient technologies and energy across the industry with an inclusion of health, aviation and rail industries (Lundvall and Borr\'as, 12).

GE’s sustainability and stakeholder responsibility

GE six-part growth process

GE’s growth process transcends across a wide spectrum with an intention of taking all its aspects into consideration. As depicted in the diagram above the company aims at growing in all its spheres, this in return is focused on encouraging long term growth in the company. Customers encompass a very critical position of the company, without customers GE will not be in operation. Hence, it’s of essence for the company to illuminate its endeavors in ensuring customer satisfaction. GE achieves customer satisfaction through value addition process and proper service delivery mechanism. Value addition is best achieved by ensuring high quality of products offered to the customers. High quality products ensure that customers come back for more of the same products and derive high utility from such products. Proper service delivery stems around the customer service organs of the company. Customers must be treated as Kings and Queens at all times, any complaints conveyed to management ought to be addressed at the shortest time possible. This means that management must derive a framework that is geared towards specifically addressing customer related issues (Lundvall and Borr\'as, 23).

Employees mark another key component in the company stakeholders. GE takes a keen approach in ensuring that its employees get the best working environment in the market. As much as the company’s top management fluctuates constantly, the company has managed to draft a permanent procedure of managing its workforce. GE ensures that all its employees are fully aware of the policies and regulations of the organization, by doing so management is able to reduce any conflicts that may arise in the process. Over the years management has taken an initiative of ensuring a program that nurtures employee talents, it is generally a program that ensures that the organization remains at the front in terms of innovation and technological development geared towards sustainability (Lampel and Shamsie, 67).

GE has an obligation to take care of the environment and the general society. The company can achieve this task by following a number of approaches. One of the most basic roadmap is the acceptance and linkage to the government policies and procedures, this involves payment of taxes, acquiring of licenses and ensuring remuneration according to the set policies by the government. The second approach that GE adopts in ensuring its corporate social responsibility is giving back to the society. GE gives back to the society by organizing charities and taking care of the needy in the society (Henderson and Evans, 76). Also the company organizes campaigns against illegal drugs and against diseases like HIV/AIDS, Ebola, Malaria and Polio, through this forum the company is able to take care of its stakeholders hence ensure its sustainability.

Conclusion

Technology has always been and will remain to be a major tool in operations in the market. The 21st century has experienced a number of innovations and inventions which have either led to growth of companies or decline. Companies which acknowledge the role of technology tend to remain installed in the market as compared to those companies that will flutter technology. General Electric took a bold approach to amalgamate technology in its production techniques.

Works cited

Amernic, Joel, Russell Craig, and Dennis Tourish. 'The Transformational Leader As Pedagogue,

Physician, Architect, Commander, And Saint: Five Root Metaphors In Jack Welch's Letters To Stockholders Of General Electric'. Human Relations 60.12 (2007): 1839--1872. Print.

BurgeSmani, Robert A, and Steven C Wheelwright. 'Strategic Management of Technology And

Innovation'. READING 1.1 (2004): n. pag. Print.

Followill, David S et al. 'Neutron Source Strength Measurements For Varian, Siemens, Elekta,

And General Electric Linear Accelerators'. Journal of applied clinical medical physics 4.3 (2003): 189--194. Print.

Henderson, Kim M, and James R Evans. 'Successful Implementation Of Six Sigma:

Benchmarking General Electric Company'. Benchmarking: An International Journal 7.4 (2000): 260--282. Print.

Lampel, Joseph, and Jamal Shamsie. 'Probing The Unobtrusive Link: Dominant Logic And The

Design Of Joint Ventures At General Electric'. Strategic Management Journal 21.5 (2000): 593--602. Print.

Lundvall, Bengt-Ake, and Susana Borr\'as. 'Science, Technology And Innovation Policy'. The

Oxford handbook of innovation (2005): 599--631. Print.

Audit exercise 2

Innovation is the best competitive tool in the market; innovation is an aspect that can place an organization in the best position in the market. Thus, innovation can be described as a process of coming up with a completely new approach in solving the obvious problems. Some of the most innovative companies in the market in the 21st century include Apple, Microsoft and Google. Just like other companies in the market that delve to penetrate and stay in the market, General Electric is founded on the precept of innovative strategies. It is this framework that ensures that the company stays in the market for a long time (Burch). GE management techniques encompass a long detailed evaluation process on the basis of performance on a curve. According to William J. Conaty the senior vice president for corporate human resource, each passing year the company establishes a long list of individuals who are required to fill a long form laying out their specific contributions while at the same time listing their strengths and weaknesses (Howells).

GE has established a checklist that it ought to follow in order to achieve its innovations in the market. Some of the most crucial considerations the company has deciphered include demand for the product, speed of adoption, success of innovation, competitive response, competitive advantage, standards set, cost implications, availability of resources, level of novelty, developmental stages, areas that may be affected and other opportunities that may accrue from an innovation strategy. However to ensure a coherent adoption of the key considerations management has to postulate a few questions. Some of the questions that may be asked in accordance with the depicted checklist include is the demand going up or down? What is the likely speed of adoption? Are there factors that may block the success of innovation? Is the strategy going to draw competition? What is the competitive advantage of having a new strategy? Do the organizational standards allow a new approach? What is the cost implication of the whole process? Do we have enough resources for a new approach? What is the level of novelty captured by the new innovation strategy? Is the new approach deemed to open opportunities of growing into a harmful infection? All these questions are meant to critically review management’s position towards a new innovation strategy.

Cost is a huge impediment in technological innovation among many companies. Many organizations incur huge costs in trying to introduce new products and new services. The problem becomes even bigger if the new products and services are not adequately accepted as anticipated by the customers in the market. GE has found itself in such position on few occasions dragging back its innovative strategy (Xu and Ke). Infrastructural cost itself becomes a constant headache to management who has to contend with their budgetary allocations at the expense of innovations. According to a study conducted by the daily monitor, it was established that approximately 30% of investors and companies in the market, experience a lag due to the huge costs associated to innovation. The huge cost is construed to the skills level needed and the infrastructure in the market. For instance, if GE wanted to come up with an employee authentication system, the company will need to recruit the necessary personnel to develop the software, secondly the company will need to purchase the matching hardware to install the program; adding up the resulting costs, it will depict that they are quite high and may be an impediment to such an innovation (Koskela and Vrijhoef).

GE has faced a couple of legal restrictions when coming up with new developments in the market. Some of the restrictions are impounded by the local authorities while others are cemented by the workers movement. Both of these agencies point out effects of infringement of privacy and the security of the employees and the customers in the market (Koskela and Vrijhoef). Legal restrictions amount to a significant portion of the overall factors of impediments in innovation strategies in the company. The law itself keeps transitioning, for instance in the year 2002, the EU passed a resolution to protect the internet users from manipulation from organizations that had access to their data and how such organizations could use the data. However, in 2012 the same law was revisited in allowing the users to have control of their data. It is such transitions that organizations like GE have to deal with to achieve innovation strategies (Hua).

GE management can employ the above checklist in a number of ways; some of the degrees of application that can be adopted by GE management include continuously assessing a new innovation on the basis of the checklist. This will go a long way in ensuring that management stays in control at all times (Fraser). By constantly reviewing a new innovation against the checklist management will not only remain in position to determine the requirements of a new innovation rather they will also determine the compatibility of a new innovation to the organization and the general market. The second approach is methodically following the checklist in the absorption of new technologies in the market. Other than in house development, the company can also employ the checklist in purchasing new innovations in the market. Additionally the company can ask for third party vendors to specifically customize products to fit the company’s demands more specifically. It is under this position that the checklist plays a significant role in the organization (Burch)

An innovation strategy engulfs a number of steps and procedures before maturation to achieve an end result. GE can follow either of the following approaches in solving its problems in system development: 1) self-developed development methodology, 2) adapted or modified development methodology, 3) use of no development methodology at all. The two key approaches that GE has to consider in its innovation strategy include the hard approach which concentrates on the procedures and technology to solve a given problem and the soft approach which agglomerates the concentration and focus on political, cultural and human aspects of the problem domain to help specify the problem (Xu and Ke). The checklist can perfectly fit this spectrum, at each stage the organization is able to clarify whether a few requirements or conditions were met at each stage, this will go a long way in solving mistakes that would accrue in the long run. One of the results of efforts to apply a scientific methodology to solve problems is the staged framework for the control of system development that divides the process into a number of manageable stages each defined in terms of the activities or responsibilities and the outputs or the milestones to be achieved. This means that GE has to follow a particular process in ensuring the success of a particular innovation strategy within its frameworks (Koskela and Vrijhoef).

The success of a given innovation strategy requires a consideration of a number of factors; GE has to put into place a mechanism that weighs the options for a given innovation. The following factors are of crucial significance if they are taken into perspective by management: cost, usability, reliability, efficiency, effectiveness, complicity, legality and adaptability (Castillo-Rojas et al.). A good innovation is that which ensures that it is achieved at the minimal cost possible, that which can be used effectively for the purpose it was developed to attain, that which is not complicated to the end users and that which lies between the legal foundations established by the government and other law enforcers. These factors are of uttermost importance to be considered by GE’s management (Koskela and Vrijhoef).

Finally GE lies in a good position to push further its innovative strategy; a number of factors lay in favor of the company and effectively utilized could lead to success to the company. The company enjoys a long stay in the market which means it comprehends the market pretty well as compared to new entrants. Additionally it enjoys economies of scale which is a huge advantage to the company to spearhead its innovative strategy. Another positive value that stands in favor of the company is its huge capital base owing to its customer base, thus GE stands in a good position to position its innovative strategy in the market (McCartney).

Works cited

Burch, Giles St John. 'The Creativeschizotype”: Help Or Hindrance To Team-Level Innovation'.

The University of Auckland Business Review 8.1 (2006): 43--50. Print.

Castillo-Rojas, Sandra M et al. 'Is Implementing Multiple Management System Standards A

Hindrance To Innovation?'. Total Quality Management \& Business Excellence 23.9-10 (2012): 1075--1088. Print.

Fraser, Barry J. 'Curriculum Evaluation--Help Or Hindrance To Teaching And Innovation?.'.

Australian Science Teachers Journal 21.2 (1975): 45--51. Print.

Howells, John. 'Patents And Downstream Innovation Suppression--Facts Or Fiction?-A Critique

Of The Use Of Historical Sources In Support Of The Thesis That Broad Patent Scope Enables The Suppression Or Hindrance Of Downstream Useful-Technology Development'. Centre for Organizational Renewal and Evolution, Working Paper-2008--01 [online]. Available at< http://www. pucsp. br/icim/ingles/downloads/pdf\_proceedings\_2008/11. pdf>[Accessed September 2012] (2008): n. pag. Print.

Hua, ZHANG. 'The Hindrance To The Innovation Of Family——Enterprises System In China

With A Case Study Of Lanzhou Huanghe Co. Group'. Journal of Beijing Institute of Technology (Social Sciences Edition) 3 (2001): 003. Print.

Koskela, Lauri, and Ruben Vrijhoef. 'Is The Current Theory Of Construction A Hindrance To

Innovation?'. Building Research \& Information 29.3 (2001): 197--207. Print.

Koskela, Lauri, and Ruben Vrijhoef. 'Is The Current Theory Of Construction A Hindrance To

Innovation?'. Building Research \& Information 29.3 (2001): 197--207. Print.

Koskela, LJ, and Ruben Vrijhoef. 'The Prevalent Theory Of Construction Is A Hindrance For

Innovation'. (2000): n. pag. Print.

McCartney, Kevin. 'National Quality Assurance Guidelines For Architectural Education-Help Or

Hindrance In Curriculum Development And Innovation'. (2013): n. pag. Print.

Xu, Yang, and Zhang Ke. 'The Hindrance And Policies In Enterprise Using Disruptive

Technology Innovation'. Economy and Management 6 (2010): 019. Print.

Audit exercise 3

Introduction

General Electric has undertaken numerous channels attached to its development strategies. These management approaches are construed to ensure that GE emerges as one of the best firms in the market in the 21st century. According to a report established by the internal audit of GE, development is always attached to the endeavors of management and the effort put in the development strategies of an organization. During its General Meetings, GE stakeholders decided that they will roll out a plan that will ensure that the company adopts a strategy that illuminates financial control, customer satisfaction, human resource development and sustainability in its activities. All these segments are very critical to the overall functioning of the company (Chenhui, 7).

GE financial activities

Public inquiries have been a stepping stone in the economy due to their contribution in the long run. For instance the Campbell Committee gave a report in 1981 on the substantial deregulation of the financial sector. This report was widely accolade by Martin Review report in 1983 on the impacts financial deregulation in the banking sector. This was later reviewed by the standing committee under the precipice of Finance and Public Administration in 1991. Almost in the same year an industry committee looked into the financial system to depict the availability of investment capital (Gberevbie, 11). It is after all this that the Wallis report gave its own version of the financial deregulation and the techniques to build on the past success by further reforms. For instance, GE has developed a plan that is attached to its operations and dedicated in ensuring that the company does not engage in unnecessary activities that cost the company money. Basically, the company employs a computerized system that allocates money to all the departments depending on the needs of each department (Haugh and Talwar, 45). Harmonization of funds in the company is a key step in ensuring that no uncoordinated activities transcend in the company. The financial controller is required to give a clear analysis of all the financial transactions in the company. Additionally, quarterly review of the financial transactions is required by law as it is adopted by GE.

Customers handling by GE

Customers are always the determinants of the success of a company in the market. A company will never thrive if it has poor relations with its customers in the market. GE has always been on the frontline in establishing a proper relation with its customers. For instance, the company has rolled out an online platform whereby customers will be required to traverse their complaints through. Additionally customer service is undertaken in a 24 hour program. Further the company has adopted a framework and policies that guide customer relations, this include timely communication and ethical behavior by the employees. Customer handling also involves after sales services and the latest loyalty programs. Such programs enable customers to feel appreciated by the clients (Houkes, 23).

Human resource

Employees aid management in attaining the set objectives of the company. Thus, the recruitment process must always be skewed in the attainment of a workforce that is motivated and encouraged to work hard and attain success. The right recruitment exercise takes numerous factors into consideration since it is a process that will impact the company positively or negatively in the long run. Employee recruitment in many companies has been criticized because of the inequality in the selection process. Over time, companies have used the wrong approach towards filling vacant positions in their departments. As a result, it has cost them immensely since they end up hiring the wrong workforce while closing the doors for those who could have spearheaded company growth. However, GE has taken an initiative of ensuring that it attains a workforce correlated on the basis of equality, performance, level of education and other factors that guide achievement of quality services and products in the market (Liyanage, 10).

Sustainability

Sustainability in the market is an approach that explains on how long a company can remain in the market maintaining or increasing its customer base. Since its establishment GE has maintained a good position in the market despite the collapse of other companies that were initiated almost the same time. GE sustainability has been established on the basis of quality and effective products and service delivery (Parrish, 30). There are numerous steps the company has taken to depict quality and effective products and services in the market. Adoption of the technology is a framework which is initiated to increase the level of products and services in the market. According to Apple CEO, Apple thrives on the basis of innovation; it is this approach which has given the company an upper hand in the market. It is on the same precept that GE thrives on, GE endeavors to adopt the latest innovation in the market, this is construed to enable the introduction of quality products and services in the market (Odero, 41).

The figure below demonstrates a sustainability matrix that can be used by GE in ensuring its stay in the market and at the same time allowing the company to establish a development plan.

Technological plan for mergers and acquisitions

In the present business world, mergers and acquisitions have become a common trend; the most common type which can be seen in the market is the horizontal model whereby companies in the same industry come together to trade. However, there are underlined factors that have faulted the whole process making it 80% less effective in business. According to John, Michael & Kersi, M&A can be regenerated by taking into considerations the marketing resources which are needed by the company (Rossi and Volpin, 45). The resources which are invested back into the companies in a merger will easily steer the company to a new level of performance. However, on the other hand, some researchers like Becker, depict that mergers and acquisitions are likely to collapse in the initial stages of their development. The reasons portrayed by Becker include; customer loss, strong internal fragility and other managerial shortcomings. Competitors will find an easy spot to hit the company since customers are uncertain about the whole process.

GE has established a technological plan that can be used in steering forth a merger and acquisition in the market. Some of the steps the company has taken in ensuring a successful merger and acquisition include rolling out a computerized system of storing data; this can be termed as a database system that will improve analysis of data. The second approach is the use of the internet as a main source of data for marketing and product development. The social media plays a significant role in ensuring the organization remains at the top position by following customer complaints and suggestions (Sumaila et al., 23). Additionally, technology can be used as tool to assess the correspondence of organizations before joining forces to establish a wider market base. Financial analysis has always been a steering factor in the development of mergers and acquisitions, hence coming up with a financial control program will help steer mergers and acquisitions. It is important to note that technology acquiring requires an assessment of cost, reliability, efficiency, usability, obsoleteness and the relative significance behind the technology.

Conclusion

As noted above it’s very important to carry out an analysis before endeavoring to take an action. This is the sole reason why market research is very important in the production of new products and services in the market. GE has adopted this framework for a long time and endeavors to improve it even further to ensure the success of its activities in the market. Clinical and executive survey gives the finer details of the internal organization of the mergers. Sometimes the major factor which gets disrupted is the internal organization of the company, managers and other employees may become unwilling to work under the stipulated conditions. Finally, it can be seen that mergers are a common thing in the present society. The major reason for the upcoming trend is the need for different organization from the same industry to extend their economies of scale; synergic need of companies (Young Sung and Choi, 12).

Works cited

Chenhui, Zhang. 'Selection of Technological Plans for Equilibrium at Low Temperature in Low-Temperature Methanol Wash Unit after Change of Ammonia Feedstock from Oil to Gas'. Chemical Fertilizer Industry 3 (2009): 022. Print.

Gberevbie, Daniel Eseme. 'Impact of Human Resource Development and Organizational Commitment on Financial Sector Employees in Nigeria'. Annals of the Alexandru Ioan Cuza University-Economics 59.2 (2012): 29--41. Print.

Haugh, Helen M, and Alka Talwar. 'How Do Corporations Embed Sustainability Across The Organization?'. Academy of Management Learning & Education 9.3 (2010): 384--396. Print.

Houkes, Wybo N. 'Rules, Plans and the Normativity of Technological Knowledge'. Springer (2013): 35--54. Print.

Liyanage, JRK. 'Impact of Strategic Human Resource Management Practices on Perceptions of Financial Performances: A Study on Medium and Large Size Software Development Firms in Sri Lanka'. (2011): n. page. Print.

Odero, Edwins. 'AN Assessment of the Impact of Human Resource, Organizational and Institutional Development on the Financial Performance of the Municipality Of Karibib.'. (2014): n. page. Print.

Parrish, Bradley D. 'Sustainability-Driven Entrepreneurship: Principles of Organization Design'. Journal of Business Venturing 25.5 (2010): 510--523. Print.

Rossi, Stefano, and Paolo F Volpin. 'Cross-Country Determinants of Mergers and Acquisitions'. Journal of Financial Economics 74.2 (2004): 277--304. Print.

Young Sung, Sun, and Jin Nam Choi. 'The Effects of Human Resource Development on Operational and Financial Performance of Manufacturing Companies: A Large-Scale, Longitudinal Analysis'. Institute for Research on Labor and Employment (2011): n. page. Print.